The owners of the Elk Creek Mine near Somerset in western Colorado have called for two major railroads, accusing them to work together and increase the cost of shipping coal.
The suit was filed in U.S. District Court in the District of Columbia by a group of sister companies based in West Palm Beach, Florida: Oxbow Carbon & Minerals LLC, Oxbow Mining LLC (owner of the Elk Creek Mine) Oxbow Calcining LLC International, Midwest Oxbow Calcining LLC, Oxbow Calcining LLC and Terror Creek LLC.
The companies sued Union Pacific Railroad Corp. (NYSE: UP) of Omaha, Neb. and Burlington Northern Santa Fe Railway Co. (BNSF) in Fort Worth. Warren Buffett’s Berkshire Hathaway Inc., based in Omaha, bought Burlington Northern in 2010.
“BNSF has not colluded or conspired in violation of the law, “said Steve Forsberg, a spokesman for Burlington Northern. “We will respond through the legal process after we have had the opportunity to fully review the complaint.”
Tom Lange, spokesman for the Union Pacific, told Bloomberg the company has not yet seen the complaint and declined comment.
“The complaint today describes how the railways have monopoly use and price-fixing illegal to drive the price of shipping coal and many other products, and those higher prices affect every business and consumer in the country,” said Barry Brett of Troutman Sanders LLP, co-counsel for the Oxbow companies in the lawsuit, in a statement.
source:bizjournals
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